At the January 18th council meeting, Council voted to amend the proposed 2011 Operating Budget, which included a proposed tax levy increase of 5.3 per cent.
Chief Administrative Officer Tully Clifford attributed the increase to the need for: an increased municipal advertising budget, new carpet for the municipal office, hiring of additional municipal staff, construction of a storage facility for the Hillcrest Fire Department, full time programming for recreation facilities and FCSS, and increased funding requests from community organizations, among other items.
Each member of Council voiced their concern and discomfort with the proposed tax increase.
Councillor Brian Gallant said he would like to see a zero per cent tax increase, noting that higher taxes deter businesses.
“We are coming out of a recession, and coming into a time when we need to spur growth,” said Gallant. “Increasing taxes deters new businesses and people from moving here, and that is what we need right now.”
“We are an expensive place to live, and our tax base is decreasing as a result of that.”
Mayor Bruce Decoux said that Councillor Gallant’s comments were somewhat short-sighted.
“We have to spend money in order to keep up infrastructure and facilities, in order to attract new families and businesses to our community,” said Decoux. “We have to set foundations for the future, and attempting to lower property taxes is the wrong way to go.”
Councillor Jerry Lonsbury also voiced his discomfort with the idea of not increasing taxes.
“This municipality has a long history of hold-the-line budgets,” said Lonsbury. “We’ve managed to hold the line, but now we’re not going anywhere.”
“I think that a tax increase is not out of line.”
Councillor Larry Mitchell noted that most of the increase in taxes comes as a result of the proposed water metering system, and acquisition of a new track hoe, which was echoed by other Councillors.
Clifford informed Council that the cost for the water meters would not come out of the tax increase, but out of reserves.
“Removing that program would not affect the tax increase,” said Clifford.
He also insisted on the municipality’s need for the track hoe, noting that other equipment has become dilapidated and is now falling apart.
He noted that the cost of purchasing the machine, approximately $230,000, would be significantly less than the cost of hiring one on a contract basis each time the municipality needed the service.